Last checked at 27 Jun 2019 14:51
FOR IMMEDIATE RELEASE
27 June 2019
Rainbow Rare Earths Ltd ('Rainbow' or 'the Company') (LSE: RBW)
Updated CPR by The MSA Group ("MSA")
Rainbow, the Rare Earth Element ("REE") mining company, is pleased to announce that it has received a Competent Person's Report ("CPR") from MSA dated 4 June 2019, which is now available on its website, www.rainbowrareearths.com. This will be incorporated into the Prospectus, further to the announcement dated 10 June 2019, which the Company anticipates publishing next month.
The full text of the CPR contains, inter alia, a review of the Company's recently announced strategy to invest in the opening of additional mining areas and new mining machinery and endorses Rainbow's strategy on the assumption that risk areas identified in its report are addressed. In addition, MSA has increased its estimation of the high grade rare earth vein tonnages classified by JORC as an Exploration Target from 20,000 - 80,000 tonnes at the time of Rainbow's IPO in 2017 to 27,000 - 103,200 tonnes, an increase of 30% at the mid-point of the range even taking into account the depletion from recent mining production.
MSA is of the view that some additional work is required before it could translate its calculations for the Exploration Target into a Resource. Specifically for the high grade deposits, it suggests more extensive use of laboratory testing of channel samples (rather than hand held Niton XRF data which Rainbow has used for a number of years) and additional computerised vein modelling; and for the lower grade deposits such as Kiyenzi a comprehensive laboratory sampling of all existing drill core from the 2018 drilling campaign plus additional drilling and metallurgical testing, all of which is planned by Rainbow in the coming months.
**ENDS**
For further information, please contact:
Rainbow Rare Earths Ltd | Martin Eales | Tel: +44 (0) 20 3910 4550 |
St Brides Partners Ltd | Priit Piip | Tel: +44 (0) 20 7236 1177 |
Arden Partners plc | Paul Shackleton Benjamin Cryer | Tel: +44 (0) 20 7614 5900 |
Notes to Editors:
Rainbow's focus is the Gakara Project in Burundi, one of the highest-grade (47%-67% Total Rare Earth Oxide) rare earths projects globally and the only African producer.
The Company began production of rare earth concentrates in Q4 2017 and has a ten-year distribution and offtake agreement with multinational thyssenkrupp Materials Trading secured for the sale of at least 5,000tpa of concentrate produced.
The Gakara basket is weighted heavily towards the magnet rare earths, including neodymium and praseodymium, which are driving demand and account for 70% of annual global REE sales due to their use in vital components in motors, generators, wind turbines, and electric vehicles.